Metropolitan Area

Waco, TX

Texas0
59
/100
Hold
#548 of 894 metros
Top 61% nationally for investing

Market Snapshot

$256,772
Median Home Price
1% above national median
$1,404/mo
Median Rent
1% above national median
6.56%
Rent-to-Price Ratio
Top 34% nationally
-$434
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Price History

Median Home Price

Median Rent

Trend based on YoY growth rate. Source: Zillow ZHVI/ZORI

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$256,772
Down Payment (20%)$51,354
Loan Amount$205,418
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,404
Monthly P&I-$1,346
Est. Expenses (35%)-$491
Net Cash Flow-$433/mo
4.3%
Cap Rate (all cash)
-8.8%
Cash-on-Cash Return
6.56%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 4.3% cap rate. All-cash buyers may see better returns.

* Based on metro-wide median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Individual counties and properties vary significantly.

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Score Breakdown

Overall Investment Score
59/100
59
Cash Flow(30%)
66/100

Based on 6.56% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
46/100

Based on -1.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)
50/100

Based on 0.0% population growth. Growing areas indicate economic stability.

Affordability(20%)
75/100

Based on price relative to estimated local incomes.

Scores are calculated using real Zillow metro-level home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. This metro score represents area-wide averages; individual counties may vary significantly.

Investment Outlook

Strengths

  • +Above-average rent-to-price ratio (6.56%)
  • +Affordable relative to local incomes
  • +Low unemployment (0.0%)

Challenges

  • -Declining home values (-1.0% YoY)
  • -Negative cash flow at typical financing (-$434/mo)
  • -Negative leverage (cap rate 4.3% < mortgage rate 6.9%)

Counties in Waco, TX

County data is being compiled for this metro area.

Compare to Similar Metros

Metro AreaVerdict
Norwalk, OH
Norwalk, OH
79$198,411$1,4878.99%Strong BuyView
Dumas, TX
Dumas, TX
79$188,966Est.Strong BuyView
Marion, OH
Marion, OH
79$183,033$1,2678.31%Strong BuyView
Portsmouth, OH
Portsmouth, OH
79$144,773Est.Strong BuyView
Kinston, NC
Kinston, NC
79$156,285$1,0428.00%Strong BuyView
Current
Waco, TX
59$256,772$1,4046.56%Hold

Rent vs buy in this metro

Rent vs buy in Waco, TXMedian $253,965 · rent $1,484/mo

The Bottom Line

HoldWaco, TX is a neutral market. Consider house hacking or targeting below-market deals in specific counties.

The Waco, TX metro area scores 59/100, ranking #548 of 894 US metros (top 61%). The 6.56% rent-to-price ratio indicates moderate cash flow potential. Current metro-wide averages make traditional buy-and-hold investing challenging. Consider house hacking, value-add strategies, or drilling down to specific counties.

Monthly Cash Flow
$-434/mo
Cap Rate
4.3%
Cash-on-Cash
-10.1%

Ready to Invest in Waco, TX?

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